Is there a solution I am not seeing?
Question: I have a situation that began in November 2006, with Revenue Canada GST. They froze my Corporate bank account with the bank.
The bank account was 4,000 in over draft at the time.
The bank, over the past 2 years, has sent collection agency after collection agency to collect the money from me as my corporation could not carry on business and the bank wanted to be reimbursed the outstanding amount.
In April 2007 the bank also put a lien against my house, (I had no knowledge of this action at the time) but the bank has been subsequently released the lien in October 2008 and papers arrived stating the release of the lien.
Each collection agency, for the bank, once they knew of the situation of the ongoing Rev Can dispute, only required paperwork to prove what I communicated to be true, which was provided.
On the last collection agency, they required the actual copies of the demand notice from GST, that were served to the bank in the first place, which was provided and they ended their barrage of letters and phone calls. They assured me the bank would now no longer harass me.
However, not more than 4 days later a new collection agency was hired, and now they are saying settle or get dire consequences, or get a lawyer to write a letter of direction that the account will be paid when everything has been settled with Revenue Canada and Revenue Canada GST which could be another year down the road. Who knows with Rev. Can.
Of course the amount of money owed to the bank has doubled in 2 years and it is now close to 8,000. The bank is continuing to try and collect their money – However, due to my business being in limbo and/or suspended, and me without any regular income (I had to remortage my house and live off the equity in the interim) it is difficult to pay anything toward the bank, let alone settle. Which the latest collection agency is pushing hard to do.
IS there a statue of limitations in a case like this?? Would it be in effect as of this date of writing, if there is?
What is any suggested recourse. All the other collection agencies for all the corporation suppliers I had been dealing with, stopped a year ago with their ongoing collection attempts.
The bank is the only one that continues to use fear and negative tactics and intimidation. Which on some days being a single mom of a college student is not something easy to handle.
The bank is the only one that continues to use fear and negative tactics and intimidation. Which on some days being a single mom of a college student is not something easy to handle.
The outcome with Revenue Canada is yet to be determined, as they just completed the Forensic audit that was negotiated for them to proceed. (It took them over a year to complete). It is a step closer to resolution as the GST will now re-audit their errors in their initial audit that started this whole process.
In the meantime I have a bank that is like a little terrier with a bone … Any solutions please or advice or guidance and pointing me in the correct direction. I frankly do not need any more emotional trauma than I have been already experiencing with Rev Can for the past 7 years.
Thank you for your time ….
Answer: Yes, in Ontario the Statute of Limitations on debt collections is two years. If you do not have regular income, the collection agency can’t garnishee your wages (since you don’t have any). The best course of action will probably be to settle with Revenue Canada, and then once you have a stable income, make a settlement with the bank.
However, there are other options, including perhaps a consumer proposal, depending on the equity in your house and your projected future income, so we suggest you contact a trustee to review your situation in detail to determine the best course of action.
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